Japan’s Financial Services Agency (FSA) is reportedly considering lifting restrictions that prevent domestic banks from buying, selling, or holding cryptocurrencies, according to a report from Yomiuri Shimbun.
The regulator is expected to discuss potential reforms at an upcoming Financial Services Council meeting, aiming to treat digital assets similarly to stocks and government bonds under a new supervisory framework.
The proposal would allow bank groups to register as licensed crypto exchange operators, expanding institutional participation in Japan’s growing crypto market of over 12 million accounts.
For market participants, the move signals Japan’s possible return as a regulatory leader in digital finance, potentially boosting institutional demand for Bitcoin and other assets in Asia. If approved, the reform could strengthen liquidity and investor confidence across crypto markets, counterbalancing recent regulatory tightening in Europe and the US.
